Depreciable asset

This query is : Resolved

Ritu Chauhan (Querist)
Follow

08 October 2014 A company was using a building owned by it for its business purpose but now it wants to let it out (not for the purpose of business). How this should be treated in books of accounts as well as in block of assets concept?

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

09 October 2014 in books of accounts, it wont make any difference. in taxation, the depreciation wont be allowed here on as the income from rent will be taxed as Income from house property

Message likes : 1 times

Ritu Chauhan

Ritu Chauhan (Querist)
Follow

09 October 2014 But sir how should it be taken out of the books, I mean I don't want to show it as a business asset. Should I show it as a sale or something else... pls suggest.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

09 October 2014 it cannot be taken out of books. A company has to record all its assets within the books maintained as per companies act

Ritu Chauhan

Ritu Chauhan (Querist)
Follow

09 October 2014 Okay but as per Income Tax Act company would not be allowed to claim depreciation on that bldg, still it would form part of company's assets ?(as per IT Act?)

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

09 October 2014 yes. you will have to disallow the depreciation in "BP" sheet

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Michael & Co.

CA K GIRIDHAR

Samruddhi Agrawal

MURALIKRISHNA EDDANAPUDI

Namita Fule

Subscribe Now

Depreciable asset

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

CA Final

Senior Executive

Manager- Finance and Compliance

GST CONSULTANCY

Accountant